Indian shares are set to open on a cautious note Friday as investors await the outcome of the Reserve Bank of India’s (RBI) bi-monthly monetary policy meeting for directional cues. The central bank is seen holding rates at record lows but the inflation forecast may be revised upwards.
Meanwhile, the finance ministry on Thursday introduced Taxation Laws (Amendment) Bill, 2021 in Lok Sabha to do away with the contentious retrospective tax demand provisions.
Benchmark indexes Sensex and the Nifty rose around 0.2 percent each on Thursday, while the rupee inched up by 2 paise to close at 74.17 against the dollar, extending gains for the fourth straight session.
Asian markets traded mostly lower this morning as China Evergrande Group bonds dropped toward record lows amid growing liquidity concerns.
Treasuries held a retreat and the dollar was steady as investors await key U.S. payrolls data due out later in the day for additional clues on the labor market recovery.
The British pound held an advance on inflation concerns while oil was on course for a weekly drop or more than 6 percent despite rising tensions in the Middle East.
U.S. stocks advanced overnight after data showed initial unemployment claims declined for a second week.
The tech-heavy Nasdaq Composite climbed 0.8 percent and the S&P 500 added 0.6 percent to reach new record closing highs on solid earnings, while the Dow rose 0.8 percent.
European stocks ended mostly higher on Thursday as investors balanced upbeat quarterly earnings against the threats to economic recovery. The pan-European Stoxx 600 gained 0.4 percent.
The German DAX edged up 0.3 percent and France’s CAC 40 index rose half a percent while the U.K.’s FTSE 100 slipped 0.1 percent after the Bank of England signaled a modest tightening of monetary policy depending upon improvement in the economy.
Market Analysis
Sensex, Nifty Set For Cautious Open Ahead Of RBI Decision
2021-08-06 03:03:28
